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Private Equity's Grip on UK Services Raises Concerns

4/7/2026

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Story summary
  • Private equity firms have increasingly controlled essential UK services, including nurseries, water companies, and care homes.
  • The shift began in the 1980s, driven by tax incentives that encouraged fund managers to buy companies with borrowed money.
  • Private equity-backed nurseries report higher profits than non-profit counterparts, but they often cut staff costs and experience higher turnover.
  • This profit-driven approach can leave communities vulnerable, as shown when a nursery abruptly closed.